Intel Will Sell New Chip in 3rd-Qtr, Ahead of Plan (Update2)
2006-06-09 12:04 (New York)

     (Adds Intel executive's comment in fourth paragraph.)

By Jason Kelly
     June 9 (Bloomberg) -- Intel Corp., the world's biggest
computer-chip maker, will accelerate production of a new
microprocessor for server computers as part of efforts to regain
market share.
     The chip, code-named ``Tulsa,'' is designed for use in
computers that run corporate networks and Web sites. Tulsa will
be sold starting in the third quarter, a quarter earlier than
planned, Intel vice president Kirk Skaugen said on a conference
call with analysts and investors today.
     Intel is working to regain market share lost to rival
Advanced Micro Devices Inc., which captured more than 20 percent
of server chip sales for the first time in more than four years
last quarter, according to Mercury Research. Intel Chief
Executive Officer Paul Otellini is pushing his engineers to get
new products out earlier to win back clients.
     ``We got behind in performance and shame on us,'' Skaugen
said on the call. ``We're confident that we're back on top with
this announcement.''
     Dell Inc., the world's biggest personal-computer maker,
said last month it would use Sunnyvale, California-based
Advanced Micro's chips for the first time. Round Rock, Texas-
based Dell will start selling servers with Advanced Micro's
Opteron chips later this year.
     Shares of Santa Clara, California-based Intel, the worst
performer in the Dow Jones Industrial Average this year, rose 8
cents to $17.19 at 11:59 a.m. in New York time in Nasdaq Stock
Market composite trading. Advanced Micro gained 15 cents to
$27.18 in New York Stock Exchange composite trading.

--Editor: Bunker

Story illustration: See {INTC US <Equity> ANR <GO>} for a chart
of analysts' recommendations on the stock. To chart Intel's
earnings against estimates, see {INTC US <Equity> SURP <GO>}.

To contact the reporter on this story:
Jason Kelly in Atlanta at (1) (404) 507-1307 or
jkelly14@bloomberg.net;

To contact the editor responsible for this story:
Emma Moody at (1) (212) 617-3504 or
emoody@bloomberg.net.

[TAGINFO]
INTC US <Equity> CN
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-0- Jun/09/2006 16:04 GMT